Loan for Manufacturing and Sales Business of Polyester Films by Japanese Company in Indonesia
Supporting Overseas Expansion of Japanese Chemical Manufacturer under the Growth Investment Facility
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on July 17 a loan agreement totaling up to USD39 million (JBIC portion) with PT. MC PET FILM INDONESIA (MFI), an Indonesian subsidiary of Mitsubishi Chemical Corporation (Mitsubishi Chemical). JBIC will provide this loan under its Growth Investment Facility.*1
The loan is co-financed with private financial institutions, bringing the total co-financing amount to USD65 million.
This loan is intended to partially finance the funds required to build a new facility to increase MFI’s capacity to produce polyester films.
The polyester film market is expected to see continued growth in demand for optical applications, such as in displays. In addition, demand for polyester films used in the manufacturing processes of electronic components is anticipated to increase rapidly due to the expanded use of electronic components in the automotive industry as well as 5G-compatible base stations. Mitsubishi Chemical intends to maintain and increase their market share in the polyester film market by enhancing their production capacity in Indonesia. The purpose of this loan is to contribute to Japanese industries in maintaining and increasing their international competitiveness through the provision of assistance for the overseas expansion of Mitsubishi Chemical.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business expansion of Japanese companies into growing markets such as Indonesia by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.